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Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on
Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Machining Machine setups Production design General factory Activity Measure. Machining Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost Product Y Product Z $ 221,100 Expected Activity 11,000 MHs $ 107,100 210 setups $ 85,000 $ 251,000 2 products 10,000 DLHS Number of setups 8,100 50 2,900 160 Number of products Direct labor-hours 1 8,100 1 1,900 Foundational 4-13 (Algo) 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Machine setups cost Product Y Product Z %
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